Japan's Nidec books 60% quarterly profit rise on EV motor demand

Nidec is better known for producing electric motors for computer hard drives and smartphones

  
Nidec Corp's logo is pictured at an earnings results news conference in Tokyo, Japan, July 25, 2018.

Nidec Corp's logo is pictured at an earnings results news conference in Tokyo, Japan, July 25, 2018.

Reuters/Kim Kyung-Hoon

TOKYO - Japanese electronic components maker Nidec Corp said on Wednesday its first-quarter operating profit jumped 60% to 44.6 billion yen ($406 million), helped by a rebound in demand for motors for electric vehicles (EVs) and home appliances.

Nidec, better known for producing electric motors for computer hard drives and smartphones, is trying to capture around a third of an emerging market for energy-saving EV motors known as e-axles. Demand for those is widely expected to increase 10 times over the next decade.

As it expands into auto parts, Nidec on Monday said it had agreed to consider a joint venture with Taiwan's Hon Hai Technology Group to develop EV motors. The companies in a news release said they would aim to establish the venture in 2022, helping Nidec expand into new markets and ensuring a stable supply of motors for Hon Hai.

In April, Nidec, which supplies e-axles to automakers including China's Guangzhou Automobile Co Ltd and France's Peugeot, announced plans to invest 200 billion yen over a decade to build a production hub in Serbia that will manufacture motors for EVs and household appliances.

Nidec's earnings result for the three months to June 30, up from 28 billion yen a year earlier, was better than the 41.2 billion yen average of six analyst estimates compiled by Refinitiv.

The company stuck to its full-year forecast for operating profit of 180 billion yen. That is lower than the 193.5 billion yen average of 22 analyst estimates, Refinitiv data showed.

($1=109.8500 yen)

(Reporting by Tim Kelly; Editing by Clarence Fernandez and Christopher Cushing) ((tim.kelly@thomsonreuters.com; +813-6441-1311;))


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